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<PRE>[DOCID: f:s1214is.txt]






107th CONGRESS
  1st Session
                                S. 1214

   To amend the Merchant Marine Act, 1936, to establish a program to 
   ensure greater security for United States seaports, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2001

  Mr. Hollings (for himself and Mr. Graham) introduced the following 
 bill; which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
   To amend the Merchant Marine Act, 1936, to establish a program to 
   ensure greater security for United States seaports, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Port and Maritime Security Act of 
2001''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) There are 361 public seaports in the United States 
        which have a broad range of characteristics, and all of which 
        are an integral part of our Nation's commerce.
            (2) United States seaports conduct over 95 percent of 
        United States overseas trade. Over the next 20 years, the total 
        volume of imported and exported goods at seaports is expected 
        to more than double.
            (3) The variety of trade and commerce that are carried out 
        at seaports has greatly expanded. Bulk cargo, containerized 
        cargo, passenger cargo and tourism, intermodal transportation 
        systems, and complex domestic and international trade 
        relationships have significantly changed the nature, conduct, 
        and complexity of seaport commerce.
            (4) The top 50 seaports in the United States account for 
        about 90 percent of all the cargo tonnage. Twenty-five United 
        States seaports account for 98 percent of all container 
        shipments. Cruise ships visiting foreign destinations embark 
        from 16 seaports.
            (5) In the larger seaports, the activities can stretch 
        along a coast for many miles, including public roads within 
        their geographic boundaries. The facilities used to support 
        arriving and departing cargo are sometimes miles from the 
        coast.
            (6) Seaports often are a major locus of Federal crime, 
        including drug trafficking, cargo theft, and smuggling of 
        contraband and aliens. The criminal conspiracies often 
        associated with these crimes can pose threats to the people and 
        critical infrastructures of seaport cities. Seaports that 
        accept international cargo have a higher risk of international 
        crimes like drug and alien smuggling and trade fraud.
            (7) Seaports are often very open and exposed and, by the 
        very nature of their role in promoting the free flow of 
        commerce, are susceptible to large scale terrorism that could 
        pose a threat to coastal, Great Lake, or riverain populations. 
        Seaport terrorism could pose a significant threat to the 
        ability of the United States to pursue its national security 
        objectives.
            (8) United States seaports are international boundaries, 
        however, unlike United States airports and land borders, United 
        States seaports receive no Federal funds for security 
        infrastructure.
            (9) Current inspection levels of containerized cargo are 
        insufficient to counter potential security risks. Technology is 
        currently not adequately deployed to allow for the non-
        intrusive inspection of containerized cargo. Additional 
        promising technology is in the process of being developed that 
        could inspect cargo in a non-intrusive and timely fashion.
            (10) The burgeoning cruise ship industry poses a special 
        risk from a security perspective. The large number of United 
        States citizens sailing on international cruises provides an 
        attractive target to terrorists seeking to cause mass 
        casualties. Approximately 80 percent of cruise line passengers 
        are United States citizens and 20 percent are aliens. 
        Approximately 92 percent of crewmembers are aliens.
            (11) Effective physical security and access control in 
        seaports is fundamental to deterring and preventing potential 
        threats to seaport operations, cargo shipments for smuggling or 
        theft or other cargo crimes.
            (12) Securing entry points, open storage areas, and 
        warehouses throughout the seaport, controlling the movements of 
        trucks transporting cargo through the seaport, and examining or 
        inspecting containers, warehouses, and ships at berth or in the 
        harbor are all important requirements that should be 
        implemented.
            (13) Identification procedures for arriving workers and 
        deterring and preventing internal conspiracies are increasingly 
        important.
            (14) On April 27, 1999, the President established the 
        Interagency Commission on Crime and Security in United States 
        Seaports to undertake a comprehensive study of the nature and 
        extent of the problem of crime in our seaports, as well as the 
        ways in which governments at all levels are responding.
            (15) The Commission has issued findings that indicate the 
        following:
                    (A) Frequent crimes in seaports include drug 
                smuggling, illegal car exports, fraud (including 
                Intellectual Property Rights and other trade 
                violations), and cargo theft.
                    (B) Data about crime in seaports have been very 
                difficult to collect.
                    (C) Internal conspiracies are an issue at many 
                seaports, and contribute to Federal crime.
                    (D) Intelligence and information sharing among law 
                enforcement agencies needs to be improved and 
                coordinated at many seaports.
                    (E) Many seaports do not have any idea about the 
                threats they face from crime, terrorism, and other 
                security-related activities because of a lack of 
                credible threat information.
                    (F) A lack of minimum physical, procedural, and 
                personnel security standards at seaports and at 
                terminals, warehouses, trucking firms, and related 
                facilities leaves many seaports and seaport users 
                vulnerable to theft, pilferage, and unauthorized access 
                by criminals.
                    (G) Access to seaports and operations within 
                seaports is often uncontrolled.
                    (H) Coordination and cooperation between law 
                enforcement agencies in the field is often fragmented.
                    (I) Meetings between law enforcement personnel, 
                carriers, and seaport authorities regarding security 
                are not being held routinely in the seaports. These 
                meetings could increase coordination and cooperation at 
                the local level.
                    (J) Security-related equipment such as small boats, 
                cameras, and vessel tracking devices is lacking at many 
                seaports.
                    (K) Detection equipment such as large-scale x-ray 
                machines is lacking at many high-risk seaports.
                    (L) A lack of timely, accurate, and complete 
                manifest (including in-bond) and trade (entry, 
                importer, etc.) 
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data negatively impacts law 
                enforcement's ability to function effectively.
                    (M) Criminal organizations are exploiting weak 
                security in seaports and related intermodal connections 
                to commit a wide range of cargo crimes. Levels of 
                containerized cargo volumes are forecasted to increase 
                significantly, which will create more opportunities for 
                crime while lowering the statistical risk of detection 
                and interdiction.
            (16) United States seaports are international boundaries 
        that--
                    (A) are particularly vulnerable to threats of drug 
                smuggling, illegal alien smuggling, cargo theft, 
                illegal entry of cargo and contraband;
                    (B) may present weaknesses in the ability of the 
                United States to realize its national security 
                objectives; and
                    (C) may serve as a vector for terrorist attacks 
                aimed at the population of the United States.
            (17) It is in the best interests of the United States--
                    (A) to be mindful that United States seaports are 
                international ports of entry and that the primary 
                obligation for the security of international ports of 
                entry lies with the Federal government;
                    (B) to be mindful of the need for the free flow of 
                interstate and foreign commerce and the need to ensure 
                the efficient movement of cargo in interstate and 
                foreign commerce;
                    (C) to increase United States seaport security by 
                establishing a better method of communication amongst 
                law enforcement officials responsible for seaport 
                boundary, security, and trade issues;
                    (D) to formulate guidance for the review of 
                physical seaport security, recognizing the different 
                character and nature of United States seaports;
                    (E) to provide financial incentives to help the 
                States and private sector to increase physical security 
                of United States seaports;
                    (F) to invest in long-term technology to facilitate 
                the private sector development of technology that will 
                assist in the non-intrusive timely detection of crime 
                or potential crime;
                    (G) to harmonize data collection on seaport-related 
                and other cargo theft, in order to address areas of 
                potential threat to safety and security;
                    (H) to create shared inspection facilities to help 
                facilitate the timely and efficient inspection of 
                people and cargo in United States seaports; and
                    (I) to improve Customs reporting procedures to 
                enhance the potential detection of crime in advance of 
                arrival or departure of cargoes.

SEC. 3. PORT SECURITY TASK FORCE.

    (a) Establishment.--The Secretary shall establish a Port Security 
Task Force--
            (1) to help implement the provisions of this Act;
            (2) to help coordinate programs to enhance the security and 
        safety of United States seaports;
            (3) to help provide long-term solutions for seaport 
        security issues;
            (4) to help coordinate the security operations of local 
        seaport security committees;
            (5) to help ensure that the public and local seaport 
        security committees are kept informed about seaport security 
        enhancement developments;
            (6) to help provide guidance for the conditions under which 
        loan guarantees and grants are made; and
            (7) to consult with the Coast Guard and the Maritime 
        Administration in establishing port security program guidance.
    (b) Membership.--
            (1) In general.--The Task Force shall include 
        representatives of the Coast Guard and the Maritime 
        Administration.
            (2) Other agencies.--The Secretary shall consult with the 
        Secretary of the Treasury to invite the participation of the 
        United States Customs Service, and may invite the participation 
        of other departments and agencies of the United States with an 
        interest in port security, port security-related matters, and 
        border protection issues.
            (3) Required private sector representatives.--The Task 
        Force shall include representatives, appointed by the Secretary 
        of--
                    (A) port authorities;
                    (B) coastwise management units;
                    (C) longshore labor organizations;
                    (D) ocean shipping companies;
                    (E) trucking companies;
                    (F) railroad companies;
                    (G) transportation workers;
                    (H) ocean shippers;
                    (I) freight forwarding companies; and
                    (J) other representatives whose participation the 
                Secretary deems beneficial.
    (c) Subcommittees.--The Task Force may establish subcommittees to 
facilitate consideration of specific issues, including port security 
border protection and maritime domain awareness issues.
    (d) Law Enforcement Subcommittee.--The Task Force shall establish a 
subcommittee comprised of Federal, State, and local government law 
enforcement agencies to address port security issues, including 
resource commitments and law enforcement sensitive matters.
    (e) Exemption From FACA.--The Federal Advisory Committee Act (5 
U.S.C. App.) does not apply to the Task Force.
    (f) Acceptance of Contributions; Joint Venture Arrangements.--In 
carrying out its responsibilities under this Act, the Task Force, or a 
member organization or representative acting with the Task Force's 
consent, may accept contributions of funds, material, services, and the 
use of personnel and facilities from public and private entities by 
contract or other arrangement if the confidentiality of security-
sensitive information is maintained and access to such information is 
limited appropriately.
    (g) Funding.--Of the amounts made available under section 17(b) 
there shall be made available to the Secretary of Transportation for 
activities of the Task Force $1,000,000 for each of fiscal years 2003 
through 2006 without further appropriation.

SEC. 4. ESTABLISHMENT OF LOCAL PORT SECURITY COMMITTEES.

    (a) In General.--The United States Coast Guard shall establish 
seaport security committees--
            (1) to utilize the information made available under this 
        Act;
            (2) to define the physical boundaries within which to 
        conduct vulnerability assessments in recognition of the unique 
        characteristics of each port;
            (3) to review port security vulnerability assessments 
        promulgated under section 5;
            (4) to implement the guidance promulgated under section 7;
            (5) to help coordinate planning and other necessary 
        security activities by conducting meetings no less frequently 
        than 4 times each year, to disseminate information that will 
        facilitate law enforcement activities; and
            (6) to conduct an exercise at least once every 3 years to 
        verify the effectiveness of each port authority and marine 
        terminal security plan.
    (b) Membership.--In establishing those committees, the United 
States Coast Guard may utilize or augment any existing harbor safety 
committee or seaport readiness committee, but the membership of the 
seaport security committee shall include representatives of--
            (1) the port authority;
            (2) Federal, State and local government;
            (3) Federal, State, and local government law enforcement 
        agencies;
       
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     (4) labor organizations and transportation workers;
            (5) local management organizations; and
            (6) private sector representatives whose inclusion is 
        deemed beneficial by the Captain-of-the-Port.
    (c) Chairman.--The local seaport security committee shall be 
chaired by the Captain-of-the-Port.
    (d) Exemption From FACA.--The Federal Advisory Committee Act (5 
U.S.C. App.) does not apply to a local seaport security committee.
    (e) Acceptance of Contributions; Joint Venture Arrangements.--In 
carrying out its responsibilities under this Act, a local seaport 
security committee, or a member organization or representative acting 
with the committee's consent, may accept contributions of funds, 
material, services, and the use of personnel and facilities from public 
and private entities by contract or other arrangement if the 
confidentiality of security-sensitive information is maintained and 
access to such information is limited appropriately.
    (f) Funding.--Of the amounts made available under section 17(b) 
there shall be made available to the Commandant $3,000,000 for each of 
fiscal years 2003 through 2006 without further appropriation to carry 
out this section, such sums to remain available until expended.

SEC. 5. COAST GUARD PORT SECURITY VULNERABILITY ASSESSMENTS.

    (a) In General.--The Commandant of the Coast Guard, in consultation 
with the Defense Threat Reduction Agency, the Center for Civil Force 
Protection, and other appropriate public and private sector 
organizations, shall  develop standards and procedures for conducting 
seaport security vulnerability assessments.
    (b) Initial Schedule.--The Coast Guard, in cooperation with local 
port authority committee officials with proper security clearances, 
shall complete no fewer than 10 seaport security vulnerability 
assessments annually, until it has completed such assessments for the 
50 ports determined by the Commandant to be the most strategic or 
economically strategic ports in the United States. If a seaport 
security vulnerability assessment has been conducted within 5 years by 
or on behalf of a port authority or marine terminal authority, and the 
Commandant determines that it was conducted in a manner that is 
generally consistent with the standards and procedures developed under 
subsection (a), the Commandant may accept that assessment rather than 
conducting another seaport security vulnerability assessment for that 
port.
    (c) Review by Port Authority.--The Commandant shall make the 
seaport security vulnerability assessment for a seaport available for 
review and comment by officials of the port authority with proper 
security clearances or marine terminal operator representatives with 
proper security clearances.
    (d) Maps and Charts.--
            (1) Collection and distribution.--The Commandant and the 
        Administrator shall, working through local seaport security 
        committees where appropriate--
                    (A) collect, store securely, and maintain maps and 
                charts of all United States seaports that clearly 
                indicate the location of infrastructure and overt-
                security equipment;
                    (B) make those maps and charts available upon 
                request, on a secure and confidential basis, to--
                            (i) the Maritime Administration;
                            (ii) the United States Coast Guard;
                            (iii) the United States Customs Service;
                            (iv) the Department of Defense;
                            (v) the Federal Bureau of Investigation; 
                        and
                            (vi) the Immigration and Naturalization 
                        Service.
            (2) Other Agencies.--The Coast Guard and the Maritime 
        Administration shall establish a process for providing relevant 
        maps and charts collected under paragraph (1), and other 
        relevant material, available, on a secure and confidential 
        basis, to appropriate Federal, State, and local government 
        agencies, and seaport authorities, for the purpose of obtaining 
        the comments of those agencies before completing a seaport 
        vulnerability assessment for each such seaport.
            (3) Secure storage and limited access.--The Coast Guard and 
        the Maritime Administration shall establish procedures that 
        ensure that maps, charts, and other material made available to 
        Federal, State, and local government agencies, seaport 
        authorities, and local seaport security committees are 
        maintained in a secure and confidential manner and that access 
        thereto is limited appropriately.
    (e) Annual Status Report to Congress.--Notwithstanding section 7(c) 
of the Ports and Waterways Safety Act (33 U.S.C. 1226(c)), the Coast 
Guard and the Maritime Administration shall report annually to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure on 
the status of seaport security in a form that does not compromise, or 
present a threat to the disclosure of security-sensitive information 
about, the seaport security vulnerability assessments conducted under 
this Act. The report may include recommendations for further 
improvements in seaport security measures and for any additional 
enforcement measures necessary to ensure compliance with the seaport 
security plan requirements of this Act.
    (f) Funding.--Of the amounts made available under section 17(b) 
there shall be made available to the Commandant $10,000,000 for each of 
fiscal years 2003 through 2006 without further appropriation to carry 
out this section, such sums to remain available until expended.

SEC. 6. MARITIME TRANSPORTATION SECURITY PROGRAMS.

    (a) In General.--The Commandant and the Administrator shall jointly 
initiate a rulemaking proceeding to prescribe regulations to protect 
the public from threats originating from vessels in maritime 
transportation originating or terminating in a United States seaport 
against an act of crime or terrorism. In prescribing a regulation under 
this subsection, the Commandant and the Administrator shall--
            (1) consult with the Secretary of the Treasury, the 
        Attorney General, the heads of other departments, agencies, and 
        instrumentalities of the United States Government, State and 
        local authorities, and the Task Force; and
            (2) consider whether a proposed regulation is consistent 
        with--
                    (A) protecting the public; and
                    (B) the public interest in promoting maritime 
                transportation and commerce.
    (b) Security Programs.--
            (1) Program to be established.--Each port authority and 
        marine terminal authority for an area designated under section 
        4(a)(2) at which a port security vulnerability assessment has 
        been conducted under this Act shall establish a maritime 
        transportation security program within 1 year after the 
        assessment is completed.
            (2) General requirements.--A security program established 
        under paragraph (1) shall provide a law enforcement program and 
        capability at that seaport that is adequate to ensure the 
        safety of the public from threats of crime and terrorism.
            (3) Specific requirements.--A security program established 
        under paragraph (1) shall be linked to the Captain-of-the-Port 
        authorities for maritime trade and shall include--
                    (A) provisions for establishing and maintaining 
                physical security for seaport areas and approaches;
                    (B) provisions for establishing and maintaining 
                procedural security for processing passengers, cargo, 
                and crewmembers, and personnel security for the 
                employment of individuals and service providers;
                    (C) a
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 credentialing process to limit access to 
                sensitive areas;
                    (D) a process to restrict vehicular access to 
                seaport areas and facilities;
                    (E) restrictions on carrying firearms and other 
                prohibited weapons; and
                    (F) a private security officer certification 
                program, or provisions for using the services of 
                qualified State, local, and private law enforcement 
                personnel.
            (c) Incorporation of Marine Terminal Operator's Program.--
        Notwithstanding the requirements of subsection (b)(3), the 
        Captain-of-the-Port may approve a security program of a port 
        authority, or an amendment to an existing program, that 
        incorporates a security program of a marine terminal operator 
        tenant with access to a secured area of the seaport, if the 
        program or amendment incorporates--
            (1) the measures the tenant will use, within the tenant's 
        leased areas or areas designated for the tenant's exclusive use 
        under an agreement with the port authority, to carry out the 
        security requirements imposed by the Commandant and the 
        Administration on the port authority; and
            (2) the methods the port authority will use to monitor and 
        audit the tenant's compliance with the security requirements.
    (d) Incorporation of Other Security Programs and Laws.--
Notwithstanding the requirements of subsection (b)(3), the Captain-of-
the-Port may approve a security program of a port authority, or an 
existing program, that incorporates a State or local security program, 
policy, or law. In reviewing any such program, the Captain-of-the-Port 
shall--
            (1) endeavor to avoid duplication and to recognize the 
        State or local security program or policy; and
            (2) ensure that no security program established under 
        subsection (b)(3) conflicts with any applicable provision of 
        State or local law.
    (e) Review and Approval of Security Programs.--
            (1) In general.--The Captain-of-the-Port shall review and 
        approve or disapprove each security program established under 
        subsection (b). If the Captain-of-the-Port disapproves a 
security program, then--
                    (A) the Captain-of-the-Port shall notify the port 
                authority or marine terminal authority in writing of 
                the reasons for the disapproval; and
                    (B) the port authority or marine terminal authority 
                shall submit a revised security plan within 6 months 
                after receiving the notification of disapproval.
    (f) 5-Year Reviews.--Whenever appropriate, but in no event less 
frequently than once every 5 years, each port authority or marine 
terminal operator required to develop a security program under this 
section shall review its program, make such revisions to the program as 
are necessary or appropriate, and submit the results of its review and 
the revised program to the Captain-of-the-Port.
    (g) No Erosion of Other Authority.--Nothing in this section 
precludes any agency, instrumentality, or department of the United 
States from exercising, or limits its authority to exercise, any other 
statutory or regulatory authority to initiate or enforce seaport 
security standards.

SEC. 7. SECURITY PROGRAM GUIDANCE.

    (a) In General.--The Commandant and the Administrator, in 
consultation with the Task Force, shall develop voluntary security 
guidance that will serve as a benchmark for the review of security 
plans that--
            (1) are linked to the Captain-of-the-Port authorities for 
        maritime trade;
            (2) include a set of recommended ``best practices'' 
        guidelines for the use of maritime terminal operators; and
            (3) take into account the different nature and 
        characteristics of United States seaports and the need to 
        promote commerce.
    (b) Revision.--The Commandant and the Maritime Administrator shall 
review the guidelines developed under subsection (a) not less 
frequently than every 5 years and revise them as necessary.
    (c) Areas Covered.--The guidance developed under subsection (a) 
shall include the following areas:
            (1) General security.--The establishment of practices for 
        physical security of seaport areas and approaches, procedural 
        security for processing passengers, cargo, and crewmembers, and 
        personnel security for employment of individuals and service 
        providers.
            (2) Access to sensitive areas.--The use of a credentials 
        process, administered by public or private sector security 
        services, to limit access to sensitive areas.
            (3) Vehicular access.--The use of restrictions on vehicular 
        access to seaport areas and facilities, including requirements 
        that seaport authorities and primary users of seaports 
        implement procedures that achieve appropriate levels of control 
        of vehicular access and accountability for enforcement of 
        controlled access by vehicles.
            (4) Firearms.--Restrictions on carrying firearms.
            (5) Certification of private security officers.--A private 
        security officer certification program to improve the 
        professionalism of seaport security officers.

SEC. 8. INTERNATIONAL SEAPORT SECURITY.

    (a) Coast Guard; International Application.--The Commandant shall 
make every effort to have the guidance developed under section 7(a) 
adopted by appropriate international organizations as an international 
standard and shall, acting through appropriate officers of the United 
States Government, seek to encourage the development and adoption of 
seaport security standards under international agreements in other 
countries where adoption of the same or similar standards might be 
appropriate.
    (b) Maritime Administration; Port Accreditation Program.--The 
Administrator shall make every effort to have the guidance developed 
under section 7(a) adopted by appropriate organizations as security 
standards and shall encourage the establishment of a program for the 
private sector accreditation of seaports that implement security 
standards that are consistent with the guidance.
    (c) International Port Security Improvement Activities.--
            (1) In general.--The Administrator shall establish a 
        program to assist foreign seaport operators in identifying port 
        security risks, conducting port security vulnerability 
        assessments, and implementing port security standards.
            (2) Identification of strategic foreign ports.--The 
        Administrator shall work with the Secretary of Defense and the 
        Attorney General to identify those foreign seaports where 
        inadequate security or a high level of port security 
        vulnerability poses a strategic threat to United States defense 
        interests or may be implicated in criminal activity in the 
        United States.
            (3) Dissemination of information abroad.--The Administrator 
        shall work with the Secretary of State to facilitate the 
        dissemination of seaport security program information to port 
        authorities and marine terminal operators in other countries.
    (d) Funding.--Of the amounts made available under section 17(b) 
there shall be made available to the Administrator $500,000 for each of 
fiscal years 2003 through 2006 without further appropriation to carry 
out this section, such sums to remain available until expended.

SEC. 9. MARITIME SECURITY PROFESSIONAL TRAINING.

    (a) In General.--The Secretary shall establish a program, in 
consultation with the Federal Law Enforcement Center, the United States 
Merchant Marine Academy's Global Maritime and Transportation School, 
and the Maritime Security Council, and the International Association of 
Airport and Seaport Police, to develop standards and procedures for 
traini
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ng and certification of maritime security professionals.
    (b) Establishment of Security Institute.--The Secretary shall 
establish the Maritime Security Institute at the United States Merchant 
Marine Academy's Global Maritime and Transportation School to train and 
certify maritime security professionals in accordance with 
internationally recognized law enforcement standards. Institute 
instructors shall be knowledgeable about Federal and international law 
enforcement, maritime security, and port and maritime operations.
    (c) Training and Certification.--The following individuals shall be 
eligible for training at the Institute:
            (1) Individuals who are employed, whether in the public or 
        private sector, in maritime law enforcement or security 
        activities.
            (2) Individuals who are employed, whether in the public or 
        private sector, in planning, executing, or managing security 
        operations--
                    (A) at United States ports;
                    (B) on passenger or cargo vessels with United 
                States citizens as passengers or crewmembers;
                    (C) in foreign ports used by United States-flagged 
                vessels or by foreign-flagged vessels with United 
                States citizens as passengers or crewmembers.
    (d) Program Elements.--The program established by the Secretary 
under subsection (a) shall include the following elements:
            (1) The development of standards and procedures for 
        certifying maritime security professionals.
            (2) The training and certification of maritime security 
        professionals in accordance with internationally accepted law 
        enforcement and security guidelines, policies, and procedures.
            (3) The training of students and instructors in all aspects 
        of prevention, detection, investigation, and reporting of 
        criminal activities in the international maritime environment.
            (4) The provision of offsite training and certification 
        courses and certified personnel at United States and foreign 
        ports used by United States-flagged vessels, or by foreign-
        flagged vessels with United States citizens as passengers or 
        crewmembers, to develop and enhance security awareness and 
        practices.
    (e) Annual Report.--The Institute shall transmit an annual report 
to the Senate Committee on Commerce, Science, and Transportation and 
the House of Representatives Committee on Transportation and 
Infrastructure on the expenditure of appropriated funds and the 
training and other activities of the Institute.
    (f) Funding.--Of the amounts made available under section 17(b), 
there shall be made available to the Secretary, without further 
appropriation, to carry out this section--
            (1) $2,500,000 for each of fiscal years 2003 and 2004, and
            (2) $1,000,000 for each of fiscal years 2005 and 2006,
such amounts to remain available until expended.

SEC. 10. PORT SECURITY INFRASTRUCTURE IMPROVEMENT.

    (a) In General.--Title XI of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1271 et seq.) is amended by adding at the end thereof the 
following:

``SEC. 1113. LOAN GUARANTEES FOR PORT SECURITY INFRASTRUCTURE 
              IMPROVEMENTS.

    ``(a) In General.--The Secretary, under section 1103(a) and subject 
to the terms the Secretary shall prescribe and after consultation with 
the United States Coast Guard, the United States Customs Service, and 
the Port Security Task Force established under section 3 of the Port 
and Maritime Security Act of 2001, may guarantee or make a commitment 
to guarantee the payment of the principal of, and the interest on, an 
obligation for seaport security infrastructure improvements for an 
eligible project at any United States seaport involved in international 
trade.
    ``(b) Limitations.--Guarantees or commitments to guarantee under 
this section are subject to the extent applicable to all the laws, 
requirements, regulations, and procedures that apply to guarantees or 
commitments to guarantee made under this title.
    ``(c) Transfer of Funds.--The Secretary may accept the transfer of 
funds from any other department, agency, or instrumentality of the 
United States Government and may use those funds to cover the cost (as 
defined in section 502 of the Federal Credit Reform Act of 1990 (2 
U.S.C. 61a)) of making guarantees or commitments to guarantee loans 
entered into under this section.
    ``(d) Eligible Projects.--A project is eligible for a loan 
guarantee or commitment under subsection (a) if it is for the 
construction or acquisition of--
            ``(1) equipment or facilities to be used for seaport 
        security monitoring and recording;
            ``(2) security gates and fencing;
            ``(3) security-related lighting systems;
            ``(4) remote surveillance systems;
            ``(5) concealed video systems; or
            ``(6) other security infrastructure or equipment that 
        contributes to the overall security of passengers, cargo, or 
        crewmembers.

``SEC. 1114. GRANTS.

    ``(a) Financial Assistance.--The Secretary may provide financial 
assistance for eligible projects (within the meaning of section 
1113(d).
    ``(b) Matching Requirements.--
            ``(1) 75-percent federal funding.--Except as provided in 
        paragraph (2), Federal funds for any eligible project under 
        this section shall not exceed 75 percent of the total cost of 
        such project. In calculating that percentage, the non-Federal 
        share of project costs may be provided by in-kind contributions 
        and other noncash support.
            ``(2) Exceptions.--
                    ``(A) Small projects.--There are no matching 
                requirements for grants under subsection (a) for 
                projects costing not more than $25,000.
                    ``(B) Higher level of support required.--If the 
                Secretary determines that a proposed project merits 
                support and cannot be undertaken without a higher rate 
                of Federal support, then the Secretary may approve 
                grants under this section with a matching requirement 
                other than that specified in paragraph (1).
    ``(c) Allocation.--The Secretary shall ensure that financial 
assistance provided under subsection (a) during a fiscal year is 
distributed so that funds are awarded for eligible projects that 
address emerging priorities or threats identified by the Task Force 
under section 5 of the Port and Maritime Security Act of 2001.
    ``(d) Project Proposals.--Each proposal for a grant under this 
section shall include the following:
            ``(1) The name of the individual or entity responsible for 
        conducting the project.
            ``(2) A succinct statement of the purposes of the project.
            ``(3) A description of the qualifications of the 
        individuals who will conduct the project.
            ``(4) An estimate of the funds and time required to 
        complete the project.
            ``(5) Evidence of support of the project by appropriate 
        representatives of States or territories of the United States 
        or other government jurisdictions in which the project will be 
        conducted.
            ``(6) Information regarding the source and amount of 
        matching funding available to the applicant, as appropriate.
            ``(7) Any other information the Secretary considers to be 
        necessary for evaluating the eligibility of the project for 
        funding under this title.''.
    (b) Annual Accounting.--The Secretary of Transportation shall 
submit an annual summary of loan guarantees and commitments to make 
loan guarantees under section 1113 of the Merchant Marine Act, 1936, 
and grants made under section 1114 of that Act, to the Task Force. The 
Task Force shall make that information available to the public and to 
local seaport security committees through appropriate media of 
communication
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, including the Internet.
    (c) Funding.--Of amounts made available under section 17(b), there 
shall be made available to the Secretary of Transportation without 
further appropriation--
            (1) $8,000,000 for each of the fiscal years 2003, 2004, 
        2005, and 2006 as guaranteed loan costs (as defined in section 
        502(5) of the Federal Credit Reform Act of 1990; 2 U.S.C. 
        661a(5)),
            (2) $10,000,000 for each of such fiscal years for grants 
        under section 1114 of the Merchant Marine Act, 1936, and
            (3) $2,000,000 for each such fiscal year to cover 
        administrative expenses related to loan guarantees and grants,
such amounts to remain available until expended.
    (d) Authorization of Appropriations.--In addition to the amounts 
made available under subsection (c)(2), there are authorized to be 
appropriated to the Secretary of Transportation for grants under 
section 1114 of the Merchant Marine Act, 1936, $10,000,000 for each of 
the fiscal years 2003, 2004, 2005, and 2006.

SEC. 11. SCREENING AND DETECTION EQUIPMENT.

    (a) Funding.--Of amounts made available under section 17(b), there 
shall be made available to the Commissioner of Customs without further 
appropriation for the purchase of non-intrusive screening and detection 
equipment for use at United States seaports--
            (1) $15,000,000 for fiscal year 2003,
            (2) $16,000,000 for fiscal year 2004,
            (3) $18,000,000 for fiscal year 2005, and
            (4) $19,000,000 for fiscal year 2006,
such sums to remain available until expended.
    (b) Accounting.--The Commissioner shall submit a report for each 
such fiscal year to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on the expenditure of funds 
appropriated pursuant to this section.

SEC. 12. ANNUAL REPORT ON MARITIME SECURITY AND TERRORISM.

    Section 905 of the International Maritime and Port Security Act (46 
U.S.C. App. 1802) is amended by adding at the end thereof the 
following: ``Beginning with the first report submitted under this 
section after the date of enactment of the Port and Maritime Security 
Act of 2001, the Secretary shall include a description of activities 
undertaken under that Act and an analysis of the effect of those 
activities on seaport security against acts of terrorism.''.

SEC. 13. REVISION OF PORT SECURITY PLANNING GUIDE.

    The Secretary of Transportation, acting through the Maritime 
Administration and after consultation with the Task Force and the 
United States Coast Guard, shall publish a revised version of the 
document entitled ``Port Security: A National Planning Guide'', 
incorporating the guidance promulgated under section 7, within 3 years 
after the date of enactment of this Act, and make that document 
available on the Internet.

SEC. 14. SECRETARY OF TRANSPORTATION TO COORDINATE PORT-RELATED CRIME 
              DATA COLLECTION.

    (a) In General.--The Secretary of Transportation shall--
            (1) require, to the extent feasible, United States 
        government agencies with significant regulatory or law 
        enforcement responsibilities at United States seaports to 
        modify their information databases to  ensure the collection 
and retrievability of data relating to crime at or affecting such 
seaports;
            (2) evaluate the feasibility of capturing data on cargo 
        theft offenses (including such offenses occurring outside such 
        seaports) that would indicate the port of entry, the port where 
        the shipment originated, where the theft occurred, and 
        maintaining the confidentiality of shipper and carrier unless 
        voluntarily disclosed, and, if feasible, implement its capture;
            (3) if feasible, and in conjunction with the Task Force, 
        establish an outreach program to work with State law 
        enforcement officials to harmonize the reporting of data on 
        cargo theft among the States and with the United States 
        government's reports;
            (4) if the harmonization of the reporting of such data 
        among the States is not feasible, evaluate the feasibility of 
        using private data bases on cargo theft and disseminating 
        confidential cargo theft information to local port security 
        committees for further dissemination to appropriate law 
        enforcement officials; and
            (5) in conjunction with the Task Force, establish an 
        outreach program to work with local port security committees to 
        disseminate cargo theft information to appropriate law 
        enforcement officials.
    (b) Report on Feasibility.--The Secretary of Transportation shall 
report to the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation and 
Infrastructure within 1 year after the date of enactment of this Act on 
the feasibility of each activity authorized by subsection (a).
    (c) Interstate or Foreign Shipments by Carrier.--
            (1) In general.--Section 659 of title 18, United States 
        Code, is amended--
                    (A) by striking ``with intent to convert to his own 
                use'' each place it appears;
                    (B) by inserting ``trailer,'' after ``motortruck,'' 
                in the first undesignated paragraph;
                    (C) by inserting ``air cargo container,'' after 
                ``aircraft,'' in the first undesignated paragraph;
                    (D) by inserting a comma and ``or from any 
                intermodal container, trailer, container freight 
                station, warehouse, or freight consolidation 
                facility,'' after ``air navigation facility'' in the 
                first undesignated paragraph;
                    (E) by striking ``one year'' and inserting ``3 
                years'' in the fifth undesignated paragraph;
                    (F) by adding at the end of the fifth undesignated 
                paragraph the following: ``Notwithstanding the 
                preceding sentence, the court may, upon motion of the 
                Attorney General, reduce any penalty imposed under this 
                paragraph with respect to any defendant who provides 
                information leading to the arrest and conviction of any 
                dealer or wholesaler of stolen goods or chattels moving 
                as or which are a part of or which constitute an 
                interstate or foreign shipment.'';
                    (G) by inserting after the first sentence in the 
                penultimate undesignated paragraph the following: ``For 
                purposes of this section, goods and chattel shall be 
                construed to be moving as an interstate or foreign 
                shipment at all points between the point of origin and 
                the final destination (as evidenced by the waybill or 
                other shipping document of the shipment), regardless of 
                any temporary stop while awaiting transshipment or 
                otherwise.''; and
                    (H) by adding at the end the following:
    ``It shall be an affirmative defense (on which the defendant bears 
the burden of persuasion by a preponderance of the evidence) to an 
offense under this section that the defendant bought, received, or 
possessed the goods, chattels, money, or baggage at issue with the sole 
intent to report the matter to an appropriate law enforcement officer 
or to the owner of the goods, chattels, money, or baggage.''.
            (2) Federal sentencing guidelines.--Pursuant to section 994 
        of title 28, United States Code, the United States Sentencing 
        Commission shall amend the Federal sentencing guidelines to 
        provide a sentencing enhancement of not less than 2 levels for 
        any offense under section 659 of title 18, United States Code, 
        as amended by this section.
            (3) Report to congress.--
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The Attorney General shall 
        annually submit to Congress a report, which shall include an 
        evaluation of law enforcement activities relating to the 
        investigation and prosecution of offenses under section 659 of 
        title 18, United States Code.
    (d) Funding.--Out of amounts made available under section 17(b), 
there shall be made available to the Secretary of Transportation, 
without further appropriation, $1,000,000 for each of fiscal years 
2003, 2004, 2005, and  2006, to modify existing data bases to capture 
data on cargo theft offenses and to make grants to States to harmonize 
data on cargo theft, such sums to remain available until expended.

SEC. 15. SHARED DOCKSIDE INSPECTION FACILITIES.

    (a) In General.--The Secretary of the Treasury, the Secretary of 
Agriculture, the Secretary of Transportation, and the Attorney General 
shall work with each other, the Task Force, and the States to establish 
shared dockside inspection facilities at United States seaports for 
Federal and State agencies.
    (b) Funding.--Of the amounts made available under section 17(b), 
there shall be made available to the Secretary of the Transportation, 
without further appropriation, $1,000,000 for each of fiscal years 
2003, 2004, 2005, and 2006, such sums to remain available until 
expended, to establish shared dockside inspection facilities at United 
States seaports in consultation with the Secretary of the Treasury, the 
Secretary of Agriculture, and the Attorney General.

SEC. 16. IMPROVED CUSTOMS REPORTING PROCEDURES.

    In an manner that is consistent with the promulgation of the 
manifesting and in-bond regulations and with the phased-in 
implementation of those regulations in the development of the Automated 
Commercial Environment Project, the United States Customs Service shall 
improve reporting of imports at United States seaports--
            (1) by promulgating regulations to require, notwithstanding 
        the second sentence of section 411(b) of the Tariff Act of 1930 
        (19 U.S.C. 1411(b)), all ocean manifests to be transmitted in 
        electronic form to the Service in sufficient time for the 
        information to be used effectively by the Service;
            (2) by promulgating regulations to require, notwithstanding 
        sections 552, 553, and 1641 of such Act (19 U.S.C. 1552, 1553, 
        and 1641), all entries of goods, including in-bond entries, to 
        provide the same information required for entries of goods 
        released into the commerce of the United States to the Service 
        before the goods are released for shipment from the seaport of 
        first arrival; and
            (3) by distributing the information described in paragraphs 
        (1) and (2) on a real-time basis to any Federal, State, or 
        local government agency that has a regulatory or law-
        enforcement interest in the goods.

SEC. 17. 4-YEAR REAUTHORIZATION OF TONNAGE DUTIES.

    (a) In General.--
            (1) Extension of duties.--Section 36 of the Act of August 
        5, 1909 (36 Stat. 111; 46 U.S.C. App. 121) is amended by 
        striking ``through 2002,'' each place it appears and inserting 
        ``through 2006,''.
            (2) Conforming amendment.--The Act entitled ``An Act 
        concerning tonnage duties on vessels entering otherwise than by 
        sea'', approved March 8, 1910 (36 Stat 234; 46 U.S.C. App. 132) 
        is amended by striking ``through 2002,'' and inserting 
        ``through 2006,''.
    (b) Availability of Funds.--Amounts deposited in the general fund 
of the Treasury as receipts of tonnage charges collected as a result of 
the amendments made by subsection (a) shall be made available in each 
of fiscal years 2003 through 2006 to carry out this Act, as provided in 
sections 3(g), 4(f), 5(f), 8(d), 9(f), 10(c), 11(a), 14(d), and 15(b).

SEC. 18. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Maritime Administration.
            (2) Captain-of-the-Port.--The term ``Captain-of-the-Port'' 
        means the United States Coast Guard's Captain-of-the-Port.
            (3) Commandant.--The term ``Commandant'' means the 
        Commandant of the United States Coast Guard.
            (4) Secretary.--Except as otherwise provided, the term 
        ``Secretary'' means the Secretary of Transportation.
            (5) Task Force.--The term ``Task Force'' means the Port 
        Security Task Force established under section 3.
                                 &lt;all&gt;

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